Although the Alternative Minimum Tax (AMT)is Meant to Prevent High-Income

question 54

Essay

Although the alternative minimum tax (AMT)is meant to prevent high-income taxpayers from using tax shelters to avoid paying tax,why might married taxpayers with several children and jobs resulting in high unreimbursed employee business expenses find themselves paying AMT?

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Definitions:

Employee

An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.

Company Truck

A vehicle owned and operated by a business for the purpose of carrying out company tasks or services.

Employer's Control

The extent of authority and influence an employer has over the working conditions and tasks of their employees.

Employee

An individual who is hired by a company to perform specific duties in exchange for compensation.